The U.S. Chamber of Commerce has filed an emergency appeal asking the U.S. Supreme Court to pause California’s sweeping new climate-reporting laws, arguing that the measures violate companies’ free-speech rights and would impose significant compliance burdens on businesses nationwide.
The laws, signed by Gov. Gavin Newsom in 2023, are set to take effect early next year and would require thousands of companies operating in California to publicly report their carbon emissions and disclose financial risks tied to climate change. Lower courts have refused to block the rules, prompting business groups to escalate the fight to the nation’s highest court.
California argues the laws increase transparency and encourage meaningful emissions reductions. But the Chamber and other business coalitions say the requirements amount to “compelled speech,” forcing companies to publish data they may disagree with or consider misleading. They warn that without Supreme Court intervention, firms across the country could face “irreparable harm.”
Under the first law, large companies earning more than $1 billion annually must begin reporting direct emissions in 2026 and indirect emissions—from supply chains, product transport, and employee travel—in 2027. Estimates vary, but regulators believe roughly 2,600 businesses will be affected; the Chamber says closer to 5,000.
A second law targets companies earning more than $500 million a year, requiring them to file climate-risk reports every two years. More than 4,100 companies are expected to fall under this rule.
Companies that fail to comply could face civil penalties, and ExxonMobil has already launched a separate lawsuit challenging the regulations.
California contends the laws do not violate the First Amendment because commercial disclosures receive limited constitutional protection. Newsom has previously called the emissions-reporting law a key part of the state’s strategy to turn “transparency into climate action.”
The push for disclosure comes as similar federal efforts face obstacles. The U.S. Securities and Exchange Commission approved a climate-reporting rule last year, but enforcement is on hold amid legal challenges. Meanwhile, the Supreme Court has recently limited the Environmental Protection Agency’s authority on major environmental regulations—signaling a potentially uphill battle for California’s laws.
